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Investors’ Reactions to CSR News in Family Versus Nonfamily Firms : A Study on Signal (In)credibility

Sekerci, Naciye LU ; Jaballah, Jamil ; van Essen, Marc and Kammerlander, Nadine (2022) In Entrepreneurship Theory and Practice 46(1). p.82-116
Abstract

We study family firm status as an important condition in signaling theory; specifically, we propose that the market reacts more positively to positive, and more negatively to negative, CSR news (i.e., signals) from family firms than to similar news from nonfamily firms. Moreover, we propose that during recessions, the direction of these relationships reverses. Based on an event study of 1247 positive and negative changes in the CSR ratings for all firms listed on the French SFB120 stock market index (2003-2013), we find support for our hypotheses. Moreover, a post hoc analysis reveals that the relationships are contingent on whether a family CEO leads the firm.

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author
; ; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
corporate social responsibility, family CEO, family firms, market reaction, recession, signaling theory
in
Entrepreneurship Theory and Practice
volume
46
issue
1
pages
82 - 116
publisher
Wiley-Blackwell
external identifiers
  • scopus:85105484447
ISSN
1042-2587
DOI
10.1177/10422587211010498
language
English
LU publication?
yes
id
710d5b48-e8e1-4755-94c0-7a998d8e8854
date added to LUP
2021-06-08 10:33:40
date last changed
2022-04-19 06:32:22
@article{710d5b48-e8e1-4755-94c0-7a998d8e8854,
  abstract     = {{<p>We study family firm status as an important condition in signaling theory; specifically, we propose that the market reacts more positively to positive, and more negatively to negative, CSR news (i.e., signals) from family firms than to similar news from nonfamily firms. Moreover, we propose that during recessions, the direction of these relationships reverses. Based on an event study of 1247 positive and negative changes in the CSR ratings for all firms listed on the French SFB120 stock market index (2003-2013), we find support for our hypotheses. Moreover, a post hoc analysis reveals that the relationships are contingent on whether a family CEO leads the firm.</p>}},
  author       = {{Sekerci, Naciye and Jaballah, Jamil and van Essen, Marc and Kammerlander, Nadine}},
  issn         = {{1042-2587}},
  keywords     = {{corporate social responsibility; family CEO; family firms; market reaction; recession; signaling theory}},
  language     = {{eng}},
  number       = {{1}},
  pages        = {{82--116}},
  publisher    = {{Wiley-Blackwell}},
  series       = {{Entrepreneurship Theory and Practice}},
  title        = {{Investors’ Reactions to CSR News in Family Versus Nonfamily Firms : A Study on Signal (In)credibility}},
  url          = {{http://dx.doi.org/10.1177/10422587211010498}},
  doi          = {{10.1177/10422587211010498}},
  volume       = {{46}},
  year         = {{2022}},
}